15250 Ventura Boulevard Penthouse 1220, Sherman Oaks, CA 91403

High Net Worth Individual Bookkeeping

High net worth individual (HNWI) is a term used by the accounting and finance industries in reference to a person or family with high net worth.

According to the 2017 World Wealth Report by consulting firm Capgemini, the number of high net worth individuals worldwide in 2016 was 16.5 million people with a combined total wealth of $63.5 trillion. The highest proportion was concentrated in the Asia-Pacific region.

High net worth is generally quantified as liquid assets over a certain amount but there is no specific definition of how much wealth someone must have to be in the HNWI category. $1 million is the most commonly used figure to define someone as an HNWI. The precise amount may vary by financial institution and geographic area.

There are other categories, as well: an “affluent” or “sub-HNWI” person has more than $100,000 but less than $1 million, someone who is “very-HNWI” has around $5 million, and an “ultra-HNWI” individual or family has at least $30 million.

The assets must be liquid and therefore personal assets, collectibles, real estate and other non-investable assets are excluded.

High net worth individuals must carefully manage their records to preserve their wealth. This special type of accounting is known as wealth management.

A large part of effective wealth management is bookkeeping. Bookkeeping quality will affect investments, estate planning, tax planning and other financial matters. It’s a lot of work to preserve assets and the more assets someone has, the more work it takes to preserve them.

Wealth requires close attention and the expert bookkeepers at Sherman Oaks Accounting & Bookkeeping powered by One Source Services keep HNWI finances current and organized, assist with establishing and meeting saving goals, manage retirement plans, asset inheritance, and more.

Bookkeepers must collaborate with bankers, investors, lawyers, and others regarding financial matters. Discretion is extremely important to high net worth individuals.

Hiring a professional bookkeeper with wealth management experience provides high net worth individuals with peace of mind because their financial matters are being monitored and their financial information remains up-to-date and accessible.

HNWI-specialized bookkeepers can focus on one area or many, as requested by the client.

Sherman Oaks Accounting & Bookkeeping powered by One Source Services professionals have years of experience providing superb bookkeeping for high net worth individuals and families while exercising the utmost discretion.

Our packages are customizable and we use the most current technology to digitally manage books securely.